(Reuters) – Private equity firm Bain Capital LLC has reached a deal to buy Air Medical Group Holdings, the largest independent U.S. provider of emergency air medical services, for around $1 billion, a source familiar with the matter said on Thursday.
It is the latest in a string of deals which has seen private equity firms buying companies from each other, known as secondary buyouts.
Private equity firms have incentives both to buy and sell right now. Pressure is on to invest billions of dollars raised in 2006-2008 as the end of those funds’ investment periods approach. Funds are also keen to sell or take public existing investments to reward investors such as pension funds whose portfolios may be partly underwater.
Some funds also face pressure to spend capital raised in the boom and are nervous about the threat of higher taxes.
Air Medical is owned by private equity firms Florida-based Brockway Moran & Partners Inc and Pennsylvania-based MVP Capital Partners. It operates through three subsidiaries: Air Evac Lifeteam, Med-Trans Corporation, and EagleMed.
Bain has other healthcare investments, such as a stake in hospital operator HCA Inc, which filed for an initial public offering earlier this year.
Barclays and Moelis advised Air Medical on the deal, two separate sources familiar with the matter said.
The Wall Street Journal reported earlier on Thursday that Bain was in final-stage talks to buy Air Medical.